Recent financial markets have witnessed a dramatic decline in gold prices that has captured widespread attention. Following the Federal Reserve's FOMC meeting, gold has recorded nine consecutive days of losses. If today's closing price remains in negative territory, it would mark a historic bearish milestone for the precious metal.

The startling drop has pushed the Relative Strength Index (RSI) for spot gold below 20 on daily charts — a phenomenon that has occurred only three times in the past two decades, with this being the first instance in six years. This technical indicator sends a powerful signal that markets are undergoing a severe adjustment, with investor confidence in gold being severely tested.

Since the Federal Reserve's interest rate decision, gold has depreciated by 6.9%. Notably, this decline persists despite some moderation in U.S. Treasury yields, underscoring the fragile market sentiment and growing concerns about the U.S. economic outlook. While the strong dollar hasn't completely broken gold's support levels, the current market dynamics demand close attention.

The September FOMC meeting revealed that rising expectations for rate cuts next year are driving yields upward, creating ripple effects across multiple markets — particularly evident in gold's heightened volatility. Yesterday's closing RSI below 20 indicates extreme oversold conditions, reminiscent of December 2016 when prices breached $1,200 per ounce amid similar market anxiety.

Technical analysis of the four-hour chart shows some deceleration in gold's rapid descent. While no clear rebound pattern has emerged, recent lows show tentative support, with a descending wedge formation near March lows suggesting potential bottoming action. Short-term charts identify key resistance levels at $1,837 and $1,848, with the $1,880-$1,885 zone being particularly critical.

As pessimism dominates market sentiment, investors are increasingly turning to macroeconomic indicators to identify potential opportunities. While fear of further declines has taken root, experienced market participants recognize that trend reversals often emerge during periods of maximum pessimism, warranting close monitoring for potential rebound opportunities.

Gold's traditional role as a safe-haven asset faces new challenges as prices tumble, creating anxiety among investors. The evolving Fed policy framework continues to reshape market expectations, with gold's interaction with other asset classes providing valuable insights into broader economic conditions.

Market participants will closely monitor upcoming economic data and Fed commentary for clues about gold's trajectory, particularly during Tuesday's 1 PM ET webinar where analysts will examine these developments in depth. In this volatile environment, investors must remain vigilant, employing technical analysis while carefully weighing risk-reward dynamics.

Many experts recommend adopting more cautious strategies and emphasizing portfolio diversification, especially as global economic uncertainties multiply. Central bank policies, economic recovery signals, and inflation expectations will all influence gold's path forward. While current pressures remain significant, unexpected rebounds could emerge as market conditions evolve.

In summary, multiple factors — including Fed policy, global economic developments, and shifting market sentiment — continue to shape gold's trajectory. Investors must analyze both price movements and underlying drivers to navigate this complex landscape. The coming weeks represent a critical observation period, requiring disciplined analysis and measured responses to market developments.